New Consumer Protection Law – What’s New?

New Consumer Protection Law – What’s New?

September 13, 2021

On September 9, 2021, the National Assembly of the Republic of Serbia adopted a new Consumer Protection Law, which is published in the Official Gazette of the Republic of Serbia no. 88/2021, and which enters into force on September 19, 2021, whereby it shall become applicable three months following its entry into force (except for the Articles 149-169, relating to the consumer complaints and out-of-court settlement of consumer disputes, which shall become applicable six months following the entry into force) (the “CPA”).

In the official proposal of the adopted CPA, it is stated that the main intention of its adoption is the harmonization of consumer rights in the Republic of Serbia with EU consumer law, as well as the improvement of consumer protection, i.e. better and more efficient implementation of legal solutions, in order to adequately respond to new challenges in the world market.

Below please find a brief overview and explanation of the most important novelties brought by the CPA.

“Do Not Call” Registry

In accordance with solutions present in comparative legal practice, it is prohibited to make calls and/or messages by telephone to consumers whose telephone numbers are entered with the register of consumers who do not want to receive calls and/or messages within the promotion and/or sale by telephone. The subject register shall be maintained by the regulatory body responsible for electronic communications (which – in case of Serbia – is RATEL), whereby the registration shall be undertaken at the request of the consumer (submitted on the prescribed form) and free of charge, by electronic communications operator with which the consumer has an agreement.

Obligation to Issue a Calculation

In case of providing services in a value higher than RSD 5,000, the seller is obliged to make a calculation, along with the specification of services, as well as to obtain consumer’s written consent to the calculation prior to the commencement of providing services. Additionally, in case the price is agreed on the basis of the seller’s explicit statement for the accuracy of the calculation, the seller is not allowed to request a higher price. Otherwise, i.e. provided that the price is agreed without such explicit claim, the seller cannot request a price increase of more than 15% of the calculation (unless otherwise is agreed).

Novelties Concerning the Consumer Disputes

The CPA introduces the obligation of courts competent for resolving consumer disputes to keep records of such disputes but also places special emphasis on the mechanism of their out-of-court settlement (whereby the said possibility is excluded in certain categories of consumer disputes, e.g. in the field of medical services).

In an effort to improve the aforesaid mechanism, which is considered to be transparent, efficient, fast, and fair, the CPA provides that the procedure of out-of-court settlement of consumer dispute is being initiated by the consumer’s proposal (filed on the prescribed form), whereby the trader is obliged to participate in the subject procedure (under the threat of a misdemeanor liability), as well as to prominently and clearly display a notice on the said obligation at its sale point. The procedure is conducted before special bodies (mediators), its duration is limited to 90 days (except in justified cases), and it can be terminated by suspension (if its further undertaking is not purposeful), recommendation on how to resolve the dispute, or by entering into the agreement on dispute resolution (which, provided that the prescribed conditions are met, may represent a writ of execution).

Other (But Not Less Important) Novelties

Finally, the subject legal novelties include harmonizing with EU regulations in the field of tourism, i.e. protection of passengers as consumers, as well as the competition in this field (by defining the conditions for providing package services and services of related travel arrangements), introducing the possibility to issue misdemeanor orders for misdemeanors committed in the subject field (by prescribing fixed fines for entrepreneurs, legal entities and responsible persons), and also set out that the inability of the consumer to deliver the packaging to the seller cannot be a condition for resolving the complaint (nor a reason for refusing to remove the non-compliance).

Instead of a Conclusion

The best judgment if this really makes a shift in the subject field, i.e. provides a satisfactory level of protection to the consumers in Serbia, will undoubtedly give the scope and manner, as well as the effects of application of both the abovementioned and all other legal solutions of the new act. However, it is certain that the issue of consumer protection, due to its significance, but also numerous problems in practice, has long deserved to be of priority at the national level, not only when it comes to improving the normative and institutional framework, but also its actual reach and results.

This article is to be considered as exclusively informative, with no intention to provide legal advice. If you should need additional information, please contact us directly.